ANNUAL REPORT OF “TRANSGAZ” MANAGEMENT INDIVIDUAL ...

SNTGN “TRANSGAZ” SA Medias Annual Management Report for 2007
In the progress of 2007, following annual inventory and suggestions made by the
company to the National Agency for Mineral Resources, the transfer of pipelines from
the state public domain to the state private domain, amounting to lei 7,218,785.69 and
reflected in the decrease in intangible assets as opposed to 2006 was approved by GD
no. 1523/12.12.2007.
Following the initial public offering process, the value of the intangible assets
increased by the commission paid to the financial intermediary under the
intermediation contract.
Tangible assets
The tangible assets recorded an increase as opposed to 2006 as a result of:
Asset commissioning during 2007;
Transfer to the company’s domain of lands based on ownership certificates
issued by the Ministry of Economy and Finance.
Receivables
On December 31 st , 2007 the receivables balance increased as opposed to 2006, due to
the application of a new transmission tariff as of October 1 st , 2007. At the same time,
the outstanding receivables decreased as opposed to 2006, by cashing-in of receivables
from SC Termoelectrica SA.
Cash and bank accounts
On December 31 st , 2007, the cash available in bank accounts substantially increased as
opposed to 2006. Such increase is firstly justified by cashing-in of outstanding
receivables and secondly by cashing-in of amounts from the initial public offer of
shares, developed within November 26 th - December 7 th , 2007.
Short term liabilities
The liabilities to be paid within a year raised as opposed to December 31 st , 2006. Such
raise is justified by a 5-10% increase in the oil royalty for trimester IV of 2007, as
opposed to the same period of 2006.
Lond-term liabilities
Liabilities to be paid within more than a year recorded a slight decrease as opposed to
2006, which is justified by:
Decrease in long-term bank loans;
Diminishing of liabilities related to the Concession Agreement, by transferring of
pipelines to be retired, from the state public domain to the state private domain.
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